Zoopla has identified more than 30 towns across Britain where homes can potentially be bought for less than two years' worth of household earnings, offering a route onto the property ladder for buyers priced out by high house prices.
The property website's analysis of 929 towns across Britain found that a typical home is valued at £299,100, equivalent to 4.3 times annual household earnings.
Shildon named most affordable town
Shildon in County Durham was named the most affordable town, with homes there costing 1.15 times two full-time annual wages on average. Scotland accounted for 23 of the 36 towns Zoopla identified where homes typically cost less than twice the annual wages of two full-time workers.
The north east of England made up eight locations, with the North West accounting for four. Only postal towns with 5,000 homes or more were taken into consideration for the research.
Regional variations in affordability
Dover was identified as the South East's most affordable town, although a home there would typically cost nearly three times annual household earnings, Zoopla said. In London, the most affordable borough was Tower Hamlets, with homes there typically costing 4.91 times a household income with two full-time workers.
Richard Donnell, executive director at Zoopla, said: "House prices have been rising more slowly than incomes, helping to improve housing affordability, but higher mortgage rates continue to offset some of these gains by increasing the monthly cost of buying a home."
"Affordability varies widely across the country, with many towns in northern England and Scotland offering much better value relative to local household earnings," he added.
Buyers urged to widen search
Donnell noted that lower house prices do not always mean it is easier to buy, as access to employment, deposits and mortgage costs remain important considerations. He said buyers have more homes to choose from than a year ago, with greater scope to negotiate on price, particularly in southern England.
"Anyone considering a move should take a fresh look at what they can afford and what's available locally," he said. "Expanding a search to neighbouring towns could make a meaningful difference to their buying options."
Among the most affordable locations in each region or nation, according to Zoopla, are Shildon in the North East at £73,600 with a 1.15 property-to-income ratio, Fraserburgh in Scotland at £116,000 with a 1.59 ratio, and Workington in the North West at £114,900 with a 1.65 ratio. Other regional leaders include Ferndale in Wales, Kingston upon Hull in Yorkshire and the Humber, Stoke-on-Trent in the West Midlands, Ilkeston in the East Midlands, Great Yarmouth in the East of England, Dover in the South East, Bideford in the South West, and Tower Hamlets in London.
